business finance

[rouzbehh]

1. Your brother has offered to give you either $5000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable?

[EcclesCake]

This is clearly a homework question and not that difficult to work out. Tell us how you would approach it and we might guide you from there.

[squarebear]

Depends how much you need the money.

[R1Geezer]

so work out compound interest for 10 years on 5k at 7%. Is that > 10K?

of course that's the arithmetic solution but you may need the 5k now!

[R1Geezer]

Sorry this is a very simple calculation and I feel you really should have go at your homework, if stuck come back.

[AB Editor]

Afternoon R1,

The user was unable to reply, and instead hit the "report" button.

They said thanks to you and that they "got it" in the report however!

All the best,

Spare Ed

[R1Geezer]

hang on, you mean this isn't a rollocking?

[Whoever]

Ye gods! To think think that you might one day be aspiring to be an economist or a banker. No wonder the country is in such a mess. Try and have a go yourself first and then people would know that you're at least trying to do your homework yourself.

[rouzbehh]

thank you of every one, i already got the solution .....